charles: you use the word morality. i think that is what the president will use tomorrow night. his version is different. we know people that do not work hard. people that just do not try. it is called rush hour. their desks are cleanup 5:00 o'clock and they both. the person who stays there a few more hours and becomes the ceo, and the president's world, that person did not do anything extra. his sense of morality is different than yours. it is if someone else has that, we will take it from a person and give it away. stuart: to see the president sitting there with a hostile look on his face, the opposite of morality.

charles: not even a courtesy clap. michelle obama gave at least a courtesy clap. >> he said what a lot of people are thinking, but what a lot of people are afraid to say. stuart: well said. you can see the entirety of that speech on our facebook page. go to it, please. dagen and connell. connell: stuart, thank you very much. dagen: i am dagen mcdowell. connell: i am. connell mcshane. dagen: we'll bring you the argument for why we are far away from the end of this run. connell: the new attitude towards immigration reform.

dagen: though pope calls it quits. this has not happened in more than like 600 years. i wish we could have gotten a picture of o'connells face when he first heard this. the first thing we thought was it was a rumor. connell: let's do stocks now. no co-pay back. nicole: you are seeing the major market averages pulled back a little bit. the dow broke its five weeks of wins. then if pulled back a little bit. the s&p has been of six weeks in a row. we did see that as a winner.

some of the names on the move today are bank of america, pfizer and microsoft. they are really trying to squeeze numbers out. again, not huge moves. the traders do not deny that the trait has been to the upside and, obviously, they are in this wait and see mode. they are not quite ready to short it yet either. dagen: thank you. connell: 83% believing our government has a spending problem. nancy pelosi had this to say on fox news sunday. >> it is almost a false argument to say we have a spending problem. we have a budget deficit problem that we have to address. right now we have low interest on the national debt and it is a good time for us to act to lower that deficit.

we think they must be reduced. we are sick and tired of paying interest on the national debt. that is a large percentage of the budget. it is lower now because of the lower interest rate. dagen: i do not speak pelosi. let me see if i can translate what she was saying. she does not believe there was a spending problem. the budget deficit and budget cap should be fixed -- >> i think she is talking out of her -- i do not think there should be any tax increases. i think it is time for the fiscal deficit to call it off and a clear victory.

there are signs we have gone too far too quickly. left or right, i am very happy to hold off on these tax increases which i think will appeal to a lot of people. i am in equal opportunity growth guide. both sides of the aisle. i do not think we spend too much money. it is a symptom of a problem. dagen: you are arguing that we should keep everything in place. do not make any additional changes. the cbo predicts $7 trillion in additional deficits. >> i would simply say if you look at the historical data, for example, after world war ii, we

grew our way out of it. we actually introduced a great g.i. support bill. we set the foundation for the middle-class prosperity for this country for the next couple years. connell: 41% of gdp in 2008 up in 2012. the yearly annual deficit cost a trillion dollars for the first time in 2009. what is an acceptable deficit in your view? >> it is one where you have, look, i look at it in a different way. i think you want to get us back to full employment, the restaurants fall, the shops full, the deficit will come down what we get to that sort of a situation. [talking over each other]

>> i always say that blaming the deficit for our problems is like blaming the barometer because it records when someone has influenza. dagen: do you think that it has worked for us? you are happy with negative growth in the fourth quarter without no. absolutely not. they have been cutting and cutting and cutting. look at the uk, for example. we have had deficits that have actually been increasing. if you actually think that deficits are a problem, and i can understand the concern about

debt out there, if you think it is a problem, did you have to have growth. dagen: some people think if you cut spending and more money will go to the private economy. i am saying that you can argue it both ways. >> when you have concrete examples in europe where you have substantial cuts and public expenditure and the economy has completed more to the ground. if the private sector wants to save, you have to accommodate out by allawi government to spend a little bit more. connell: it was good to have you in studio. dagen: you were in the middle there somewhere. marshall, thank you very much. connell: the value of u.s. stocks up by $12 trillion since

2009. those numbers are from the federal reserve. our next guest says there is still room in the stock market. our next guest is bryan was worried. >> marshall is the keynesian. i do not believe there is any evidence to prove that he is right that government spending helps the economy. prosperity of europe, it is in the post. in the last five years, you have had substantial guts and government expenditure. >> marshall, there is no

government in europe that have cut spending in the last five years. zero. nada. over the last 40 years, france has had an 8.1 unemployment rate on average over 40 years. that would not fly here in the united states. >> i think we will have to agree to disagree. i think ronald reagan did in outstanding job. i think we would probably agree that was a good way to go. i do not think he did it by shrinking the government in this fiscal austerity graze. connell: we are both satisfied. >> i will end it with ronald reagan is a great president. [ laughter ] connell: thank you both. continuing where we left off or

started. that was pretty good. why not discuss it for a few minutes. the concept of the stock market. it has ran out a lot. now is not the time i should be pulling back. now is the time i should keep following the rally. you are a relative optimist on the u.s. economy. >> i think stocks are really undervalued. first of all, 69% of s&p 500 companies have reported or have beat expectations so far in this earnings cycle. it looks like we will have about $25.95, that puts the pd ratio of the s&p right now at a little less than 14, if you analyze that. that is a really cheap market.

i think this is the place to be and i think the market will continue to go up. connell: you have people coming out of the bond orchids that they have been in. what about the economic argument that is underneath that? with all of that said, you like the economy. why? >> you know that i call it the plow horse of economy. we are clearly not a thoroughbred. we will not win the kentucky derby here in the united states. we are powers. we keep on growing. it looks like that negative report on gdp will turn out to be a false signal.

do not get me wrong, that is a week economy. we are not doing as bad as the bears thing. i think we will grow 2.5% up. we will have building new technologies. these are allowing profit margins to go off. that is why we consistently see 60-70% of companies beating estimates. s&p earnings can easily be 110. we have a long way to go in this market. connell: brian thank you very much. thank you for playing along with marshall. dagen: a majority of americans think we are still in a recession. something the president will

have to think about going into tomorrow's state of the union address. connell: lawmakers work for a real reform to our immigration policies. a pretty good story on that coming up. before we get to all of that, here is a look at oil today. ♪ all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

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connell: let's go back to the cult of mac they do every 15 minutes. i believe she is watching wendy's. nicole: we are looking at wendy's. the big burger chain. number three. it is up 3.7% right now.

dave, its founder, died in 2002. that will be a name to watch. a slew of analyst upgrades on aol. it is up 6.5% today. connell: we will check back in at the bottom of the hour. dagen: our reaction was, hello. pope benedict xvi shocking the world announcing his resignation. we have a live report from rome. connell: majority of americans think our economy is still in a recession. first on markets now, some currencies for you.

♪

dagen: some really shocking news out of the vatican this morning. pope benedict the 16th is resigning. dennis: the first time a pope will resign in nearly 600 years. >> i do understand that there is an incredible sense of shock here as well. he always indicated he would step down from his position if he became unable to do the job mentally, physically, and that is what he did. people did not see it coming. we have heard from world leaders . it is shocking that pope benedict will be stepping down.

this is an unusual event. all sorts of new prophecies will be put into place. there will be a conclave of cardinals and so far, of course, there are already names in terms of potential next pope. it is early to get a sense of how any of them will stand in not running. that is the latest. dagen: thank you so much. it really took our breath away when the news broke. back here at home, our economy is still in a recession. we have built up unions editor at forbes joining us now from washington, d.c. you just look at this one of two ways. if you are a democrat, listen to nancy pelosi at the top of the hour. you just think more spending needs to happen.

>> i think if you are a democrat you are kind of worried. one of president obama's major wheat points is the economy. they so far have leaked some of the things he will be discussing tomorrow night to assure voters. if you analyze them one by one, his ideas for reviving the economy will do the reverse. dagen: if he has the majority of americans who think we are in a recession, won't at least some of those people -- we have heard this over and over again. more infrastructure spending. we need green energy spending. rather than talking about how strong we are in producing fossil fuels. that is the weakness in the economy and the belief that we are in a recession playing into his hands.

>> he has the pulpit and he can talk about what he will do to revive spirits. the hangover is what will really harm the president. rest assured, he will talk tomorrow night about how he will use tax breaks to bring many factory jobs back to the united states. what he is saying is he will bring back jobs that play the equivalent of a starbucks while the on a daily basis. dagen: what would you do then? if you had 53% of people thinking we are in a recession, that could actually cause economic weakness. people's behavior changes the way the economy performs. >> if you were to ask me what i were going to do, i am always looking at economic growth. we are the most talented people on earth. there is no reason the economy should be slow right now. reduce the tax burden.

reduce the regulatory burden. make trade free. that is why we get up every day. then, most importantly, stabilize the value of the dollar. if you do those four things, the u.s. economy would call by definition, take care of it. dagen: if you want a strong dollar, you better get on the phone with ted bernanke. we will see you soon. thank you. connell: we will talk about immigration coming up in a moment. we have a good story on this. dagen: bond traders. nerds galore. we love it. i remember this.

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yes, yocould. go national. go like a pro. connell: we are back. immigration reform is coming up in just a moment. we have the story of one business owner who began his life here in the united states as an illegal immigrant. it is a pretty good story.

you do not want to miss it. charlie desperado is coming up with news about the nasdaq and the ceo. this is exclusive reporting you do not want to miss. dagen: stocks now. nicole: basically, the launch may be delayed in key markets according to the data. we are seeing it down about 14%. not a good day for this particular company. i wanted to also show you, this is our door that we come in. 1901, 1913, 1939, they are doing some construction here. they are trying to beef up the nyse. try to make it more

user-friendly and business friendly. connell: thank you very much. there is a starbucks down there and everything. maybe pick us up a latte later on. we will see you in 15 minutes. watch senator john mccain respond to some of the critics on immigration reform on fox news sunday. >> 11 million people living in the shadows. i believe people deserve to come out of the shadows. the people who were brought here when they were children deserve that kind of consideration. connell: our next guest knows just about everything about this. he is now a u.s. citizen and a part owner of a u.s. business. please, welcome hector ramirez.

why don't you tell a little bit about your story. >> well, when i got to this country, i was 13 years old. my brother started putting me into school. he got me to do welding. we worked from 6:00 a.m. until four or five or 6:00 p.m. whatever time was necessary. i got my first home when i was 18 years old. of course, i have to put in an application that i was a u.s. citizen. i never said i was not. i got my first home when i was 18 years old. i have been working from that time. this is a country of

opportunities. connell: what about when you got your green card? when did you become legal? >> it was april of 88. connell: okay. the reason i bring that up is because we are going through this process again where we are considering the fact that maybe some people like you who came to the united states early in life were not legal immediately and now want to become legal. we are interested in impact of the economy. >> for me, i believe, there is definitely a good thing. eleven again people that live in the shadows. they are probably now investing money here instead of investing in their country.

i think that will start moving a little bit more of the economy also. connell: but there are rules. certain people do not follow the rules. what do you say to people who make that argument? >> you know, you take the words from whomever they come. you want to be successful, you have to work hard. that is how that has to be. if there are people who are not working correctly, we do not need them. whoever is working, either left or right, there are people with no papers. connell: you started your own business and are doing very well with that. thank you for telling your story. >> thank you. dagen: one day away from president obama's state of the

union address. connell: rich edson in d.c. was so more on that. rich: the president will renew his focus on jobs in the economy . what you are looking at is a pivot to jobs, of sorts. every few months we get this state of renewed focus on jobs and the economy. what we are looking at now is really a renewal of an old focus. >> that is what my economic agenda is designed to do and that is what i would like to talk to you about tonight. the agenda that begins with jobs. i think we are past the crisis point in the economy. we have to pivot and focus on jobs.

our top party has to be jobs and growth. that is the focus of the plan that i talked about during the campaign. >> the addresses back in september of 2010. the president has been focused on the economy, is focused on the economy and works on nothing more than he does on the economy each and every day. connell: thank you, rich. dagen: if history is any guide, if you are in the bond market, you better wake up. we will tell you why. connell: the nasdaq ceo has been very busy lately. charlie desperado coming up on the future of the nasdaq. charlie is straight ahead. do not miss it. ♪

♪ lori: i am lori rothman with your fox business brief. drivers are feeling the pain at the pump. the average price for a gallon of regular is now $3.59. nike shares running higher. jpmorgan raises the rating. nike promising target pipelines.

this network goes before a jury today. espn is offering its competitors better licensing returns for sports programming. violating a clause in their agreement. the dow is down 20 points right now. that is the latest from the fox business network. giving you the power to prosper. ♪

connell: it is a story for you if you are a fan of makers mark bourbon. they are planning to cut that out to the alcohol. demand is exceeding the ability to produce it. the taste will remain the same. the move will help increase the limited supply.

the stock is down a little. dagen: we really needed to have a southerner read that. they are watering the bourbon down. two words. virginia gentleman. when in need. some bond traders may need a drink soon if the federal reserve decides to tighten monetary policy. oh, you do not think it can happen? think again. look back to 1994. treasuries went into a tailspin. joining us now is chief economist. good to see you. this was the first year that i was a financial writer. i remember what it did to the bond market.

the hedge funds blew up. then there was orange county california. >> it is absolutely a possibility for it to happen again. the federal reserve has been very concerned about supporting the economy. inflation does not seem to be a concern. it is making very clear that they are concerned about building. i do believe that the rise in interest rates is the number one threat that we may have to face. probably not in the immediate future, but sometime down the road. dagen: if that starts to happen, the market could force the fed's hand, could it not? >> yes, exactly. it is a well laid plan for the

exit strategy. the problem is there is always something that goes wrong. i think the ultra plant of the fed will be to face the realities. we know that sometimes markets can force the hand. the fed is beginning the exit strategies. those interest rates may move. dagen: to the point of one of our earlier guests, he said we do not have a deficit problem at all. he does not believe in cutting spending right now and he does not believe in raising taxes. again, to your point, if the market turns again this country, we have a big problem. >> i completely disagree with the view that we do not have a problem. we do have a problem.

i think there is a problem of confidence. do we have the willingness in washington d.c. between the white house and congress to do fiscal consolidation. if the markets perceive that we are wavering and we will not be disciplining on that, things may turn around very quickly. we need to be very careful. then, again, monetary policy cannot substitute fiscal policy. the fed would be really constrained at that point to do something. dagen: 94, a repeat of that scenario. what are the odds? >> i do not like to put odds. i would just say 25%.

i will play the game and say 25%. we have a lot of room. we need to get our act together soon. dagen: i will take that. 25%. the well. thank you. connell: let's go back to nicole petallides as we do every 15 minutes. nicole: let's just talk about blackberry and apple. we talk about blackberry, it is a name that has soared your today. home depot -- good news for apple. apple working on an watch.

nike, some positive comments from jpmorgan. aol, after a great quarter, now all the analysts are on board and of being it. back to you. dagen: trolley gasparino has breaking news on the nasdaq. -- charlie gasparino has breaking news on the nasdaq. connell: we will be right back. ♪ [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio.

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connell: some breaking news for

you on the nasdaq. the exchange looking for a buyer to maybe take it private. dagen: charlie gasparino working the story. charlie: nasdaq is being described as preliminary, but very serious talks. the nasdaq may be going private. these discussions occurred maybe three weeks ago. they were serious, but they broke up over price. they could not come to a price. a lot of people think it is nasdaq that will go private. we should point out, time is pretty good right now to take companies private. it is kind of interesting, right as the dell deal was going down. we will have a story on fox business.com. from what i understand, they are

not in talks right now. that could change, however. this is in open sort of ballgame. they need to consider options now given the competitive landscape. equities going to major exchanges. that trading, they are going to what is known as dark pools. we do know that there is a listing war going on. they got that deal. that gives them a few bucks. a lot of these technologies listings, a lot of them are now going to the new york stock exchange. rice held is trying to remake the company. do you remember, they bought

thomson reuters information services platform. if you are going to do this, a lot of people think it is better to do this not as a public company, but do it as a private company. that is what is behind these talks. this is likely to come back. the nasdaq is in a pretty competitive situation. the nasdaq's market cap is $5 billion. what about bob's future if it went private. charlie: he is a personality on wall street, obviously. a major player among the

exchanges. he has danced around and try to do other deals. he teamed up with intercontinental exchange. a lot of times, very good manager, amazing cross cutter. want to run the whole show. that could hurt him. even in a private deal. i do not think that bob is worth 14 million. dagen: call on microsoft. charlie: microsoft is a listed company. so is dell, i think. it is hard to tell carlyle how to run the business.

the ceo of nasdaq is now the ceo of carlisle. she is a dealmaker. she is a major player here. what could the nasdaq do as a private company that they cannot do public? charlie: if you really want to remake yourself, that is what they have to do, you can trade off these exchanges. anybody that said they were in nyse company used to go to the new york stock exchange. because of him, they used to put the hammer down. connell: look at the stock on the intraday.

dagen: that is on the news that you just broke, charlie. connell: thank you. great reporting. dagen: c is letting his hair grow. it looks good. charlie: thank you. connell: president obama planning on bringing the economy back into the presentation. dagen: the money play after the blizzard of 2013. as you can imagine, it is in the oil market. dennis and cheryl are coming up. ♪ all stations come over to mission a for a final go.

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impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a comple global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. dennis: i am dennis kneale. cheryl: hello, everybody, i'm cheryl casone at the dow down 17 points, but we are still in record territory.

a guest coming up that says watch out, this market might already be oversold and says that is a good thing. dennis: president obama planning to pivot back to the economy in his state of the union address. plus our fox all-star panel. cheryl: if you haven't ordered roses for valentine's day for your loved one, you better get on it or else how you know that, the ceo of 1-800-flowers.com is here in th and the busiest day e week for his company. dennis: why is it only up to the gentleman? maybe we will look at that. lauren simonetti with a live look at the market. spiking one report moments ago from the info. lauren: let's take a look at the nasdaq spiking more than 5% right now. the stock hitting a new 52-week high. it has not been at this level since november of 2008. that of course, charlie

gasparino's report, carlyle in talks with the nasdaq to go private. nice movement there to the upside. the overall stock market. red arrows across the board. the nasdaq down two. we are well off of session lows, and after writing basically six straight weeks of gains for the nasdaq and the s&p 500, you have this pullback exactly what we saw a little bit of last week, but hopefully we can turn these arrows around the next couple of hours. cheryl: thank you very much, we will see you in 14 minutes. stocks off to a slow start today, but our next guest says a pullback is actually a good thing. chief investment strategist joins me now. you say really january was too far t too fast for the market. but a pullback would be a good thing for psychology, what you mean by that?

>> to consider the fact up over 6% through about six weeks, you annualized that out, that seems a bit unrealistic. having what i would call overdue at this point in time, a corrective phase in which the market may be backs off, i don't think that would be life-threatening and might restore some value. cheryl: the dow is up about 6%, fou45%, that is erasing most ofe month of january. that i would think would actually have the opposite effect on investor psychology. here we go again. >> i think contrarily speaking you ask the cash back into the market. this put aside by the fact we have come out so far so fast that it is unsustainable and we are waiting to put some of the money to work and better

valuations than what we have right now even though the equity market doesn't necessarily have demanding valuations, nonetheless to see this kind of a move is one plausible. cheryl: wha at what he meant why the commodities market we are seeing silver outperforming go gold, gold wasn't exactly a shining star for 2012 but to see silver get ahead in those contracts, what is going on over there? >> that is encouraging. dividing the price of one by the other, the fact silver is leaving gold at this point usually is indicative of an uptick at least of industrial activity and global activity. that is figuring tw signaling ar picture globally. with gold another $18 or so once again playing into the lack of

deflation, look at that as a healthy sign for global growth. cheryl: on the top performing sectors of 2012 was financials, and you still like financials, but for how long? first half of the year, fine, second half of the year you do not want to be in financials, what do you say? >> typically the leading sector in a bull market slayer confirming that. we cannot particularly regional banks and on the back of the recovering housing story and active managers, more fees on those dollars. we think both of those are longer-term beyond just the first half of this year. cheryl: more americans are going to regional banks to get home loans. that is a good point. thank you for being here, good to see you. >> thank you, cheryl.

dennis: president obama set to deliver his state the union address tomorrow and pivoting back to focus on the economy once again. cheryl: this isn't the first time the president is circling back around. rich edson has details. rich: the latest focus after the president's second inaugural in which didn't mention the economy explicitly all that much so we are hearing the president will focus on the economy in his state of the union tomorrow. the president every few months we get indication there is a pivot in the economy and this time we're basically seeing another focus, on the economy. >> what they can expect from this administration, i know what they can expect from you give and we will have a sustained and relentless focus over the next several months i celebrate in the pace of job creation because that is priority number one.

>> i think we are past the crisis point in the economy, but we now have to pivot and focus on jobs and growth. >> at a time our economy is still recovering, our top priority has to be jobs and growth, that is the focus, the plan i talked about during the campaign. rich: the white house has addressed this in the past. robert gibbs said in 2000 the president has been focused on the economy, his focus on the economy and works on nothing more than he does on the economy each and everyday. back to you. dennis: thank you for being with us. let's follow up with a couple of questions, the president set himself back with the inaugural address and failed to mention the economy at all, is he trying to make up for that? speakers is in a sense what you saw was much less specific, much less detailed presentation, more of a defense and progressivism when it comes to governing the

country. there are different types of speeches and there was criticism even from republicans that he failed to mention the economy, but the state of the union is a much more detailed policy speech and that is what we expect out of the president tomorrow. cheryl: many are saying the president called the state of the union at least toda they wil have something to do with spending, those spending ideas may be doa with republicans on capitol hill. cheryl: wan who want to bring another colleague who has presumably something big to say. dennis: david asman joins us. david: the president is doubling down on his ideology, bigger government, more spending for the government to guide the economic process. financial affairs whether it is the old-style infrastructure projects, i think it's going to

be a little bit more specific but he has a new speech writer. a wordsmith, his new speech writer, he goes in for these sort of big sounding phrases rather than specific policy initiatives the president used to have. one hit against hi them in the t was it sounded like he was going down to details. they are stepping back now, looking at the grand vision, this grand vision of a government solving problems is one they want to focus on. the question is, what does that mean? it means more infrastructure projects, just saw them signed that bill on more wind power projects. dennis: president obama said he wants to cut corporate income taxes, what will be in the

speech tomorrow about cutting business taxes? david: good question. rich: it depends on the industry you're looking at. typically green manufacturing manifesting itself into temporary tax credit but when you talk about this refocus we have seen over the last four years, has not been a move away from what the governing theory is and we expect to see that again tomorrow, you close certain loopholes for corporations and that in part helped to fund infrastructure and all the things david was discussing. while the president has corporate tax proposal out there, he and republicans differ greatly on how exactly to accomplish that. the focus from democrats has really been on closing loopholes, taking the money and spending it on something else were republicans for their open to close loopholes and deductions to lower rates, a flatter tax system are looking at with fewer deductions, a lower tax rate, and so there are

still majosome major differenceo accomplish that end no indication that is going to change. david: i think rich nailed it, but the fact republicans could be brilliant, don't expect it, but they could be by focusing on something the president himself wrote in 2011, this is the september 2011 president's plan for growth and deficit reduction, he gets into principles of tax reform and president obama right now, lower tax rates, the number one principle for tax reform. the tax system should be simplified, work for all americans with lower individual and corporate tax rates and fewer brackets. republicans should say mr. president, w we're with you, we think you should have tax reform particularly the kind of tax reform you mentioned in 2011, we're with you on that.

marco rubio will be delivering the request after the state of the union. he is a smart guy, think you should go back the president's own words calling for what rich edson just called. cheryl: it'll be the president coming out, talking more about jobs in the economy, won't offer anything new with regards saying nothing. that is a scary road for him, if you ask me. he will talk about the environment, green energy products. that is his infrastructure plan. david: windmill power is more offensive now than 30 years ago we began spending tens of billions of dollars on it so has government spending helped us to get more energy for wind? the answer is no.

natural gas, oil, those things have helped but those things are against the policies. dennis: david asman, thank you very much. join tomorrow night at 10:00 eastern time for television's best coverage of the state of the union. dennis: and the blizzard of 2013, spike in heating oil prices. last week, where are they headed now? phil flynn with those details. cheryl: one more argument for solar power. a guest to give us ideas on how you can make money. dennis: and, a a look at oil. (announcer) at scottrade, our clients trade and invest

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dennis: breaking news for you, hostess brand has won a court decision to put twinkies and

others on the auction block as they continue to sell off pieces of the business in bankruptcy court. the judge clearing the company to proceed with several sales processes. apollo and metropolis have been 410 million for the biggest part of that. now they will see if others can come in and try to take it out from under them because twinkies lived even if the company that made them die. cheryl: they will live forever. stocks every 15 minutes, phil flynn at the trading pits of the cme for heating oil is soaring. charles payne showing us how to make money on obamacare. but first, lauren simonetti on the nyse. nyse. 52-week highs on those reports. that was 17 minutes ago or so? lauren: still up 4%, haven't seen a level like this in more than four years for the nasdaq from charlie gasparino, looking

to take the nasdaq private. we are 20 points off of the low of the session, plus on friday we have the lowest volume of the year, somebody coming into work because of the snow, but just asked one trader what did you make of the volume today? it was terrible. red arrows off the lowest but volume is still something to contend with right now. with that, phil flynn at the cme group. phil: friday we hit the new highs for the year ahead of the super storm hit the east coast and we even took out the highs after hurricane sandy. we reversed because after the storm passed we realize for degrees in new york city, why the long heating oil? we just found another reason. futures down $0.99 but off the lows and why is that? the price of crude oil is rocketing back up.

we're supposed to have a cease-fire. they, and by the central bank official made the market turnaround, back to you cheryl and dennis. dennis: i think we're going to go over to ? cheryl: how about a little charles payne. i'm making money on obamacare. charles: i like that movie did. you are ready to go, cabin fever. i live in north dakota, so i know all about it. this is a really interesting company. they actually stimulate your brain through electric currents and with the ability to do that, leaving them to one product helping you with epilepsy. they think they can really make major inroads with treating

depression, chronic heart failure. this stock has been unbelievable. recently street sweeper putting out stories, so they put out this story a big whistleblower, a lawsuit going on and a person who worked there. you can kind of see it. it has stabilized since then. an amazing company, maybe more so than the company, but they always beat the street. the street expecting too better than the industry so right at this level, i think it is oversold. cheryl: thank you. making money, even as federal subsidies go away, we have a guest coming up who says there is still plenty of money to be made by investing in solar.

dennis: and we will tell you what the odds gamblers are laying for the options to replace the pope. cheryl: up to the minute on carnival. dennis: and how the world currencies faring against the u.s. dollar. all those red arrows means the dollar is up. i'm a conservative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses.

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dennis: a news alert, pope benedict xvi stepping down at the end of this month saying he has two weeks to continue. cheryl: green with the latest developments. he just got back from rome. >> yeah, i got back in november, but back from germany visiting his brother which is a very interesting trip as well because it was for his birthday and he said at that time he probably knew the pope was going to resign, but could not say anything. the global search 1.2 million catholics is really trying to absorb information both benedict will resign at the end of the month which is a little more than two weeks from now. a sudden shock a lot of people including catholic insiders.

the highest-ranking bishop in the united states and very close to the pope, also the president of catholic bishops. take a listen. >> my admiration for pope benedict xvi was already high, but i love him so much as brother bishop, appointing me to the archdiocese in new york, to the holy father who made me a cardinal that always admired him as a scholar, as a priest. >> hindsight is always 2020 but nobody predicted this. interview the pope did to a german journalist in which the journalist asked if he would consider resigning and the pope said he realizes he no longer is physically, psychologically and spiritually capable of handling the duties of his office, he has a right under some circumstances also an obligation to resign. he never ruled it out, the next phase is to wonder when the next

puff of white smoke will emerge, choosing the next pope. that should have been within 15 to 20 days. in normal circumstances that would have been when the pope dies. with that rule be changed as well? we will find out. dennis, cheryl. dennis: thank you very much. cheryl: citigroup just started coverage of the solar sector, for companies getting by ratings. maybe dissipatin disappearing. i first want to start with another bank, but citigroup even put one of these companies some power on the buy connectionless, but they don't want to pay for the subsidies anymore. which way are you leaning on all of this? >> i am leaning bearish.

the united states is not the market for solar in the world. they are very global, the u.s. represents less than one fifth of the global solar market. europe is much more important, china more important, so the u.s. is a growing market to be sure even though as h you said they have been pulling back on incentive. europe is much more important, and really where the demand has been falling off the cliff. for a company like some power, yes, they have had pretty good traction in the u.s. with large projects, but they have been losing large amounts of money and they just reported last week gross margin 7%, that is it, 7% and guiding to something in line, perhaps even lower in the current quarter, i would tell you that to me is an absolute short.

cheryl: i give california, arizona and example because utility companies are saying look, these companies that have solar panels on their home, they do not use all the image they are producing and we are buying it back from them because of incentives put in place by the obama administration, by the states and now they say hold on a second. oregon in particular is getting rid of all of their incentives. what does that do to the sector overall? will we see bankruptcies? some are so beaten down by many shareholders for many investors have been going to buy them on the cheap. >> there have been a lot of bank of these already and there needed to be a lot more. this is why some power had the jump. the industry capacity for manufacturing solar panels exceed global demand by 2:1.

how many other industries do we know that capacity exceeds demand by 2:1? we need to rationalize, that means absolutely have to see companies that go out of business, shut down plants, lay off workers. i know it sounds harsh, but it has to happen. some power for the record isn't going bankrupt, but i do think they will have terrible earnin earnings. to give you some examples of companies that could go bankrupt, chinese solar company, this to me is an absolute candidate for bankruptcy. $2 billion of debt earning cash, as far as the eyes can see. as early as next month. cheryl: because the panel makers in particular are one of the reasons many u.s. solar companies are failing left and

right. thank you very much. appreciate it. dennis: democratic leaders warning of tough times ahead across the board the budget cuts take effect. are those warnings justified? elizabeth macdonalds exclusivist just ahead. cheryl: if you haven't ordered roses for valentine's day, what is taking so long? when the ceo of 1-800-flowers.com. how much flowers will cost, how much h is making on it, the busiest week of the year for him but he decided to visit fox business.

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lauren: i am lauren simonetti on the floor of the new york stock exchange. stocks every 15 minutes. i wants to take you to where ford is trading.

$13.12, over the board where it trades right now, the news is ford will offer dollar for dollar price matching to all 3100 dealerships that actually agree to upgrade their stock. that of course helps with customer experience. a muteimmediate response on the street. dennis: thank you. breaking news. the nasdaq and looking for a buyer to take the exchange private. charlie gasparino broke the story earlier on fox business. charlie: sources are telling fox business network preliminary but very serious talks with the carlyle group, possibly to take nasdaq private. these discussions occur about three weeks ago, what we heard

was they were to marry for they were serious but they broke up and couldn't come to a price. if the nasdaq was going to go private, this is an $8 billion deal. a whole lot of moving parts. we should point out time is pretty good right now to take companies private. you can see what happened with dell. as the dell deals going down, because i have been between carlyle and nasdaq. cheryl: s&s charles broke this story, the nasdaq began to soar hitting a 52-week high. charlie says the talks wrote down in the nasdaq and carlyle group had no comment on the story. the cfo for carlyle previously served as cfo of the nasdaq, she played a big role in the talks before they broke down. charles will be back in the next hour of "markets now" talking to melissa and lormelissa and lorit on this story. dennis: and fox business has

obtained a memo released by house democrats delivering dire warnings on the human impact across-the-board budget cuts. one target, hurricanes and the victims. with more, elizabeth macdonald. >> it is putting in an emotional, human face on the impact of budget cuts they have march 1 in advance of the state of the union address. 4000 workers at the faa, and even saved had three hours to your wait times at airports. enforcement officers including people at the fbi, hundreds of federal prosecutors at the department of justice, tens of thousands of jobs, and you will see food safety inspection. he mentioned hurricane sandy. 1.90 yeah dollars of aid money taken back, also welfare program reductions, embassy security is deductions that time and got a e

still raging over the controversy. this memo is very detailed on the human impact on the cuts. the cuts they are talking about or a third of the increase in the growth of the discretionary. layoffs in d.c., it wasn't hit harder by the recession is what you need from the recession. cheryl: victims of sandy need money now. you see it that people still without power, can't get back in their homes, and now this story you are breaking on fox business. how much from this pile of money were supposed to go to the victims that they are not getting. liz: half of the san diego

package is really not going toward the san diego victims. so he didn't even know if the $2 billion or so being pulled back his pork. dennis: if we do the firings, a three hour delay at the airport, given that is too much of a delay, let's cut something else. this is all kind of exaggerated, isn't it? liz: it does feel like i don't know how they arrived at these numbers are these figures, but i will tell you something, it is the emotional impact of the cuts they are trying to get out ahead of the president's state of the union. cheryl: when we do do the state of the union, we're going to get, we expect more of the same. coming back from a tough economy, we don't get specifics. at the same time the bigger problem is entitlement programs. quiz: that is not in the memo.

dennis: they are about 95 billion in a $3.5 trillion budget, this is not the end of the world. liz: when they're talking about layoffs, it has grown a lot since 2008. the workforce did as well. cheryl: great story. the war over drones moving closer to home at seattle mayor and police from using them. ahead in the west coast minutes. dennis: a rose by any other name will still cost you a bundle. you better buy it for your sweetie for valentine's day or else. the ceo of 10 one 1-800-flowers when we return. cheryl: standby. we will be right back. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground.

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good job ! it's red hot deal days. get the nokia lumia 822 in red for free and discover all the things to do on the go with city lens. or the droid razr m by motorola in pink for $49.99. everything droid does in an edge-to-edge display. hurry in, because the sale ends february 20th. powerful devices. powerful network. verizon. >> i'm tracy byrnes with your fox business brief. in a fox business exclusive, charlie gasparino has learned the nasdaq group has held limited discussions with the carlyle group of going private. gasparino reporting that conversations broke up over price. they said they did not comment on market rumors or speculation. carlyle spokesperson had no comment either. apple trying to take a bite out of the watch industry.

your times and lost external reporting the tech giant is tinkering with the idea of a wearable computer for the rest made with conserved glass. they have traded dependable cree glass. this latest from fox business, giving you the power to prosper. the capital one cash rewards card gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone but her likes 50% more cash,

but i have an idea. do you want a princess dress? yes. cupcakes? yes. do you want an etch-a-sketch? yes! do you want 50% more cash? no. you got talent. [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase us a 50% annual bonus on the cash you earn. it's the card for people who like more cash. what's in your wallet? i usually say that. dennis: valentine'dennis: valene days away. have you let the panic set in? take a look at these, a bouquet of roses could cost anywhere from $30 to over 400. 1-800-flowers.com says more than 7 million roses this valentine's day. thank you for being with us. as valentine's day goes, what do you think? i'm thinking long stem red roses are really the way to go.

this carnation poodle thing you have going, don't you think a woman is thinking why did her husband get her a dozen roses instead of this silly poodle? >> if you're thinking is ridiculous, have insight into how your weekend will go this weekend. dennis: is that right? a holiday of extortion. do you think men by roses because they love their mates for they are afraid getting in trouble? >> there's a reason i decided to be a florist and you decided to be a journalist. you're little bit more dominant on the left side of the brain, you'll spend a whole week trying to find out why instead of grabbing the power and opportunity to make a whole bunch of people really happy and smile this week. dennis: red roses are a big item, then give two-thirds of the flowers on valentine's day and women give only one third. >> what we see the trend going on. we know was going on with the consumer, but the trend

valentine's day is a gross holiday because i don't think this is a discretionary spend. when you have a significant other in her life, you have a daughter, grandchildren and an odd to feel special, if not discretionary. you the opportunity to do it very extensively or have interesting weekend in your life or maybe a daughter 12 or so years old feel like her dad is the greatest in the world, have the opportunity to do that. i don't think it is discretionary, but it is more than just the love. dennis: flowers were one of the big online categories but as others go online, or flowers in danger of losing out on market share to these other direct-mail guys online? >> we still see growth in the flower business, larger than any other time of the year. i expect we will have good, solid growth somewhere in the five to 10% range of an industry. which is pretty good that the

industry has been around. dennis: are you cutting prices or are prices going up as well? >> we haven't seen a price increase for consumer in eight or nine years. we are working more efficiently, growing better products and keeping our costs down. that's why we have seen growth in the flower business. the cookie products are doing great, chocolate dipped strawberries are really on a roll. dennis: for all of that, he told the mother's day is even bigger holiday than valentine's day because you have men and women ordering and women ordering flowers for their husband's mother. now the key question before we wrap, what is there tha very lat moment to have it show up on valentine's day? >> it is valentine's day week

after all. now is 's a great time to act. dennis: thank you, jim mccann. cheryl: 15 minutes until the top of the hour, stocks every 15 minutes, we have lauren simonetti with another look at nasdaq following news charlie gasparino broke right here on fox business in the last hour. lauren: we will show you a lot of winners on a down day. look at that, up nearly 4%. it hit an annual high of 3215 right after charlie reported those talks of nasdaq going private. take a look at apple shares really putting in a strong performance today. sources and reports saying apple is working on a smartphone, and iphone on your wrist. netflix is down, linked in a nice pop. the banks are a strong part of

this process today. hitting annual highs today, jpmorgan down right now, but it hit an annual high earlier in the session. back to you. cheryl: time for your "west coast minute." speaking of valentine's day, dennis was talking about it, for the si sixth year in a row, sin city will be the most popular spot for lovebirds according to orbit, but there is more. las vegas named the sexiest city. expecting record crowds for valentine's day as well as residents a holiday weekend, three days off, everyone. and the gambling mecca seeing 37.9 million tourists in 2012, las vegas convention and visitors authority reporting 84% occupancy with average daily room rates of $108, those figures up from 2011. casino stocks seeing red arrows

right now, today anyway. let's go to the northwest, seattle's mayor has ordered the police department to abandon its plans to use drones for surveillance crime scenes. accident and even natural disasters. they were bought with federal funds but the mayor says they must be returned. residents protested their use thing it was an invasion of privacy. and that is your "west coast minute." dennis: give me a break, hundreds of thousands of iphones all over the place but we will get concerned with a floating camera? graduation day for goldman sachs, the first 10,000 small businesses program. cheryl: offering entrepreneurs training on business management, opportunity for financing and a lot more because liz claman is there from the event in cleveland, ohio. liz: it is a big day for them, forget me. the graduation ceremony is going

on right now. what you see on the stage, really small business owners, goma sex had applied to a program that called 10,000 small businesses around america. on the stage you are hearing from a man who runs a company, he did one year with the philadelphia eagles and said i need a real job. they started small businesses. you see in the first row to the right, president and chief operating officer of goldman sachs. this is a very important project for him and golden. committing half a billion dollars to 10,000 businesses. we're going to be bringing you this, call it what it is, thanks doing well. i think i said we're going to take some of the money and commit it to small businesses because that will encourage real job growth.

as you know, small businesses in america, throughout the next couple of hours senator rob portman will be joining us. he ran a small business and will be speaking to us about this. we will meet two of the graduate who already had small businesses, they're hiring end at 4:00 p.m. eastern we have the ceo of dolmen sex don't miss that. of course hitting that a weekend snowstorm. see how they're doing, but once again, graduation date in february. imagine that. back to you. dennis: take that, netflix. a new deal with cbs. cheryl: and need a drink?

why the distiller is cutting the alcohol content of its urban. -- urban. first, the winners on the nasdaq. some you know and some of you don't know. activision doing well. we will be right back. [ male announcer ] you are a business pro. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national

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dennis: vindication at the box office for melissa mccartney, the rambunctious comic actress now in her first starring role. her movie "identity theft" won the box office far higher than forecast despite the first critic: her tractor sites, sid, humongous, female hippo, tough to explain that many fat jokes, who knew he was even still

alive. and the cbs ordering the talent to cut back on flesh exposure. like gary a boy to moon the neighbors. they even joke about it. take a listen. >> as you can see, i read the memo. dennis: the dress may be showing up. cheryl: i like her attitude last night. there may have been some drinking at the grammys, bourbon cutting the alcohol in the drink. due to rising global demand for bourbon saying is exceeding the ability to produce it. dennis: gas prices rising for the third straight week. oil closing a $97 per barrel.

today is gonna be an important day for us.

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